You have probably seen the fear and greed index quoted all week. It is a daily score from 0 to 100 that sums up the mood of the crypto market. A score of 0 means extreme fear, 100 means extreme greed, and the middle is neutral.
It is built from six signals: price volatility (25%), momentum and volume (25%), social media activity (15%), surveys (15%), bitcoin dominance (10%) and search trends (10%).
Today it reads 13, extreme fear, down from 20 yesterday and its lowest since July 1. That tells you the crowd is scared, not what happens next. It is a sentiment gauge, not a price forecast, so use it as context, never as a buy or sell signal. #Crypto
It is built from six signals: price volatility (25%), momentum and volume (25%), social media activity (15%), surveys (15%), bitcoin dominance (10%) and search trends (10%).
Today it reads 13, extreme fear, down from 20 yesterday and its lowest since July 1. That tells you the crowd is scared, not what happens next. It is a sentiment gauge, not a price forecast, so use it as context, never as a buy or sell signal. #Crypto